Electric vehicle registrations in US reached record market share

Electric vehicle business in Denmark

Electric vehicle (EV) registrations in the US in 2020 reached record market share of 1.8 percent, says the latest analysis from IHS Markit.

December 2020 also represented the highest monthly share for EV new registrations, at 2.5 percent of the industry.

While registration volumes were down across the industry due to COVID-19 impacts, the fact that EVs experienced such increased share indicates rising consumer acceptance of EVs. EVs accounted for 2.8 percent of new vehicle registrations in December, more than tripling EV retail share three years ago.  This rising EV acceptance coincides with recent OEM announcements of substantial investments in electrification.

Further development of EV share in the US in 2021 is nearly guaranteed. IHS Markit forecasts EV sales in 2021 will surpass 3.5 percent, and continue to increase to more than 10 percent in 2025. With more than 100 new EV options expected between 2021 and 2025, a continued increase in consumer acceptance and demand will grow as ICE options are displaced by EVs.

EV owners are returning to market for another EV at record levels as well, and this is expected to continue. More than half of EV households that return to market acquire another EV, up substantially from prior years.

“Record high EV loyalty rates imply consumer acceptance for the entire electric vehicle concept,” said Tom Libby, IHS Markit Associate Director of Industry Analysis.